Can I cancel insurance on a financed vehicle if I have gap insurance?
I have a 2007 vehicle that I'm financing. The motor ceased and I want to cancel insurance, I have full coverage and liability. I have gap insurance with my financial institution. I plan to continue my monthly payments until its paid off. Can I sell this vehicle, donate it or junk it? Will gap insurance help me in any way?
In most cases, gap insurance is only applicable if the vehicle is totaled in an accident — not due to mechanical or motor issues due to wear-and-tear. So it would not apply in your situation. If your car is no longer functional, I recommend you donate or junk it, and cancel your insurance coverage on it.
If you have any questions, don't hesitate to ask.